HRM-Introduction Henry Ford the pioneer in the field of management state, "Take out may building, take out

my machines and all capital but leave my men with me, I will become Henry Ford again." This statement of Henry Ford highlights that human resources in an organisation plays a crucial role. In fact, management of human resource is the most important and central because proper or improper use of other resources depends upon human factor. In other words, without the cooperation of human resources it is not possible to achieve the objectives of an organisation. The human resources refer to the knowledge, skills, abilities, values, aptitudes and beliefs possessed by its workforce in the organisation. In fact competent and skilled workforce determines the efficiency and effectiveness of the organisation. Other things remaining the same, an organisation with competent workforce is likely to be more effective in comparison to the organisation low in this factor. In the words of Alfred P. Solan, "Most business are alike except as to people." So, achieving human resources excellence leads to organisation's excellence.

Human Resource Management For any organisation to function effectively, it must have resources of men (Human Resource), money, materials and machinery. The resources by themselves cannot fulfill the objectives of an organisation, they need to be collected, co-ordinated and utilised through human resources. And, the effective management of human resources is also vital. Hence, Human Resource Management (HRM) has emerged as a major function in organisations. In this unit, we will be discussing about the structural aspect of HRM such as evolution, approaches, components and scope. Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

MEANING: Human Resource Management (HRM) is a process of bringing people and organizations together so that the goals of each are met. It is that part of the management process which is concerned with the management of human resources in an organization. It tries to secure the best from people by winning their wholehearted cooperation. In short, it may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner. Definitions:-

Edwin Flippo defines- HRM as planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.
The National Institute of Personal Management (NIPM) of India has defined human resources personal management as that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up enterprise and having regard for the well being of the individuals and of working groups, to enable them to make their best contribution to its success. According to Decenzo and Robbins, HRM is concerned with the people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieve organsational objectives. This is true, regardless of the type of organization government, business, education, health or social action. Definition 1 HRM is planning, organizing, directing and controlling of the procu rement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished. Definition 2 Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training". --------humanresources.about.com

OBJECTIVES OF HRM Societal objective.To be socially responsible to the needs and challenges of society while minimizing the negative impact of such demands upon the organization. The failure of organizations to use their resources for society's benefit may result in restrictions. For example, societies may pass laws that limit human resource decisions. Organizational objective. To recognize that HRM exists to contribute to organizational effectiveness. HRM is not an end in itself; it is only a means to assist the organization with its primary objectives. Simply stated, the department exists to serve the rest of the organization. Functional objective. To maintain the department's contribution at a level appropriate to the organisation's needs. Resources are wasted when HRM is more or less sophisticated than the organisation demands. A department's level of service must be appropriate for the organisation it serves. Personal objective. To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual's contribution to the organisation. Personal objectives of employees must be met if workers are to be maintained, retained and motivated. Otherwise, employee performance and satisfaction may decline, and employees may leave the organisation. Nature of HRM 1. HRM involves management functions like planning, organizing, directing and controlling

2. It involves procurement, development, maintenance of human resource 3. It helps to achieve individual, organizational and social objectives 4. HRM is a multidisciplinary subject. It includes the study of management, psychology, communication, economics and sociology. 5. It involves team spirit and team work. 6. It is a continuous process.

Scope of HRM

The scope of HRM refers to all the activities that come under the banner of HRM. These activities are as follows 1. Human resources planning :- Human resource planning or HRP refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage. 2. Job analysis design :- Another important area of HRM is job analysis. Job analysis gives a detailed explanation about each and every job in the company. 3. Recruitment and selection :- Based on information collected from job analysis the company prepares advertisements and publishes them in the newspapers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of HRM. 4. Orientation and induction :- Once the employees have been selected an induction or orientation program is conducted. This is another important area of HRM. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees. 5. Training and development :- Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area where the company spends a huge amount 6. Performance appraisal :- Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided. 7. Compensation planning and remuneration :- There are various rules

regarding compensation and other benefits. It is the job of the HR department to look into remuneration and compensation planning. 8. Motivation, welfare, health and safety :- Motivation becomes important to sustain the number of employees in the company. It is the job of the HR department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department. 9. Industrial relations :- Another important area of HRM is maintaining coordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company
Significance of HRM

Advantages/benefits/Significance/importance/need of HRM HRM becomes significant for business organization due to the following reasons. 1. Objective :- HRM helps a company to achieve its objective from time to time by creating a positive attitude among workers. Reducing wastage and making maximum use of resources etc. 2. Facilitates professional growth :- Due to proper HR policies employees are trained well and this makes them ready for future promotions. Their talent can be utilized not only in the company in which they are currently working but also in other companies which the employees may join in the future. 3. Better relations between union and management :- Healthy HRM practices can help the organization to maintain co-ordinal relationship with the unions. Union members start realizing that the company is also interested in the workers and will not go against them therefore chances of going on strike are greatly reduced. 4. Helps an individual to work in a team/group :- Effective HR practices teach individuals team work and adjustment. The individuals are now very comfortable while working in team thus team work improves. 5. Identifies person for the future :- Since employees are constantly trained, they are ready to meet the job requirements. The company is also able to identify potential employees who can be promoted in the future for the top level jobs. Thus one of the advantages of HRM is preparing people for the future. 6. Allocating the jobs to the right person :- If proper recruitment and selection methods are followed, the company will be able to select the right people for the right job. When this happens the number of people leaving the job will reduce as the will be satisfied with their job leading to decrease in labour turnover.

7. Improves the economy :- Effective HR practices lead to higher profits and better performance by companies due to this the company achieves a chance to enter into new business and start new ventured thus industrial development increases and the economy improves. HRM functions

The role of human resource management is to plan, develop, and administer policies and programmes designed to make expeditious use of an organisations human resources. It is that part of management which is concerned with the people at work and with their relationship within an enterprise. Its objectives are: (1) the effective utilisation of human resources; (2) desirable working relationships among all members of the organisation; and (3) maximum individual development. The major functional areas in human resource management are: (1) planning, (2) staffing, (3) employee development, and (4) employee maintenance. These four areas and their related functions share the common objective of an adequate number of competent employees with the skills, abilities, knowledge, and experience needed for further organisational goals. Although each human resource function can be assigned to one of the four areas of personnel responsibility, some functions serve a variety of purposes. For example, performance appraisal measures serve to stimulate and guide employee development as well as salary administration purposes. The compensation function facilitates retention of employees and also serves to attract potential employees to the organisation. A brief description of usual human resource functions is given below: Human Resource Planning: In the human resource planning function, the numberand type of employees needed to accomplish organisational goals are determined. Research is an important part of this function because planning requires the collection and analysis of information in order to forecast human resources supplies and to predict future human resources needs. The basic human resource planning strategy is staffing and employee development. Job Analysis: Job analysis is the process of describing the nature of a job and specifying the human requirements, such as skills, and experience needed to perform it. The end product of the job analysis process is the job description. A job description spells out work duties and activities of employees. Job descriptions are a vital source of information to employees, managers, and personnel people because job content has a great influence on personnel programmes and practices. Staffing: Staffing emphasises the recruitment and selection of the human resources for an organisation. Human resources planning and recruiting precede the actual selection of people for positions in an organisation. Recruiting is the personnel function that attracts qualified applicants to fill job vacancies. In the selection function, the most qualified applicants are selected for hiring from among those attracted to the organisation by the recruiting function. On selection, human resource functionaries are involved in developing and administering methods that enable managers to decide which applicants to select and which to reject for the given jobs. Orientation: Orientation is the first step toward helping a new employee adjust himself to the new job and the employer. It is a method to acquaint new employees with particular aspects of

their new job, including pay and benefit programmes, working hours, and company rules and expectations. Training and Development: The training and development function gives employees the skills and knowledge to perform their jobs effectively. In addition to providing training for new or inexperienced employees, organisations often provide training programmes for experienced employees whose jobs are undergoing change. Large organisations often have development programmes which prepare employees for higher level responsibilities within the organisation. Training and development programmes provide useful means of assuring that employees are capable of performing their jobs at acceptable levels. Performance Appraisal: This function monitors employee performance to ensure that it is at acceptable levels. Human resource professionals are usually responsible for developing and administering performance appraisal systems, although the actual appraisal of employee performance is the responsibility of supervisors and managers. Besides providing a basis for pay, promotion, and disciplinary action, performance appraisal information is essential for employee development since knowledge of results (feedback) is necessary to motivate and guide performance improvements. Career Planning: Career planning has developed partly as a result of the desire of many employees to grow in their jobs and to advance in their career. Career planning activities include assessing an individual employees potential for growth and advancement in the organisation. Compensation: Human resource personnel provide a rational method for determining how much employees should be paid for performing certain jobs. Pay is obviously related to the maintenance of human resources. Since compensation is a major cost to many organisations, it is a major consideration in human resource planning. Compensation affects staffing in that people are generally attracted to organisations offering a higher level of pay in exchange for the work performed. It is related to employee development in that it provides an important incentive in motivating employees to higher levels of job performance and to higher paying jobs in the organisation. Benefits: Benefits are another form of compensation to employees other than direct pay for work performed. As such, the human resource function of administering employee benefits shares many characteristics of the compensation function. Benefits include both the legally required items and those offered at employers discretion. The cost of benefits has risen to such a point that they have become a major consideration in human resources planning. However, benefits are primarily related to the maintenance area, since they provide for many basic employee needs. Labour Relations: The term labour relations refers to interaction with employees who are represented by a trade union. Unions are organisation of employees who join together to obtain more voice in decisions affecting wages, benefits, working conditions, and other aspects of employment. With regard to labour relations, the personnel responsibility primarily involves negotiating with the unions regarding wages, service conditions, and resolving disputes and grievances. Record-keeping: The oldest and most basic personnel function is employee recordkeeping.

This function involves recording, maintaining, and retrieving employee related information for a variety of purposes. Records which must be maintained include application forms, health and medical records, employment history (jobs held, promotions, transfers, lay-offs), seniority lists, earnings and hours of work, absences, turnover, tardiness, and other employee data. Complete and up-to-date employee records are essential for most personnel functions. More than ever employees today have a great interest in their personnel records. They want to know what is in them, why certain statements have been made, and why records may or may not have been updated. Personnel records provide the following: I. A store of up-to-date and accurate information about the companys employees.

II. A guide to the action to be taken regarding an employee, particularly by comparing him with other employees. III. A guide when recruiting a new employee, e.g. by showing the rates of pay received by comparable employees. IV. V. VI. A historical record of previous action taken regarding employees. The raw material for statistics which check and guide personnel policies. The means to comply with certain statutory requirements.

Personnel Research: All personnel people engage in some form of research activities. In a good research approach, the object is to get facts and information about personnel specifics in order to develop and maintain a programme that works. It is impossible to run a personnel programme without some pre-planning and post-reviewing. For that matter, any survey is, in a sense, research. There is a wide scope for research in the areas of recruitment, employee turnover, terminations, training, and so on. Through a well-designed attitude survey, employee opinions can be gathered on wages, promotions, welfare services, working conditions, job security, leadership, industrial relations, and the like. Inspite of its importance, however, in most companies, research is the most neglected area because personnel people are too busy putting out fires. Research is not done to put out fires but to prevent them. Research is not the sole responsibility of any one particular group or department in an organisation. The initial responsibility is that of the human resource department, which however should be assisted by line supervisors and executives at all levels of management. The assistance that can be rendered by trade unions and other organisations should not be ignored, but should be properly made use of. Apart from the above, the HR function involves managing change, technology, innovation, and diversity. It is no longer confined to the culture or ethos of any single organisation; its keynote is a cross-fertilisation of ideas from different organisations. Periodic social audits of HR functions are considered essential. HR professionals have an all-encompassing role. They are required to have a thorough

knowledge of the organisation and its intricacies and complexities. The ultimate goal of every HR person should be to develop a linkage between the employee and the organisation because the employees commitment to the organisation is crucial. The first and foremost role of HR functionary is to impart continuous education to employees about the changes and challenges facing the country in general, and their organisation in particular. The employees should know about their balance sheet, sales progress, diversification plans, restructuring plans, sharp price movements, turnover and all such details. The HR professionals should impart education to all employees through small booklets, video films, and lectures. The primary responsibilities of a human resource manager are:

To develop a thorough knowledge of corporate culture, plans and policies. To act as an internal change agent and consultant. To initiate change and act as an expert and facilitator. To actively involve himself in companys strategy formulation. To keep communication lines open between the HRD function and individuals and groups both within and outside the organisation. To identify and evolve HRD strategies in consonance with overall business strategy. To facilitate the development of various organisational teams and their working relationship with other teams and individuals. To try and relate people and work so that the organisation objectives are achieved effectively and efficiently. To diagnose problems and to determine appropriate solution particularly in the human resources areas. To provide co-ordination and support services for the delivery of HRD programmes and services. To evaluate the impact of an HRD intervention or to conduct research so as to identify, develop or test how HRD in general has improved individual or organisational performance.

HRM Model

The HRM model contains all HR activities. When these activities are discharged effectively, they will result in a competent and willing workforce who will help realize organizational goals. There is another variable in the model environment. It may be stated that the HR function does not operate in vacuum. It is influenced by several internal and external forces like economic, technological, political, legal, organizational, and professional conditions. HRM: is a management function that helps the managers to recruit, select, train, and develop members for an organization. Human Resource Planning: is understood as the process of forecasting an organizations future demand for, and supply of, the right type of people in the right number.

Job Analysis: is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job descriptions and job specification. Recruitment: is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. Selection: is the process of differentiating between applicants in order to identify (and hire) those with greater likelihood of success in a job. Placement: is understood as the allocation of people to jobs. It is the assignment or reassignment of an employee to a new or different job. Training and development: it is an attempt to improve current or future employee performance by increasing an employees ability to perform through learning, usually by changing the employees attitude or increasing his or her skills and knowledge. The need for training and development is determined by employees performance deficiency, computed as follows: Training and development need = Standard performance Actual performance Remuneration: is the compensation an employee receives in return for his or her contribution to the organization. Motivation: is a process that starts with a psychological or physiological deficiency or need that activates behavior or a drive that is aimed at a goal or an incentive. Participative management: Workers participation may broadly be taken to cover all terms of association of workers and their representatives with the decision making process, ranging from exchange of information, consultations, decisions and negotiations to more institutionalized forms such as the presence of workers members on management or supervisory boards or even management by workers themselves as practiced in Yugoslavia. (ILO) Communication: may be understood as the process of exchanging information, and understanding among people. Safety and health: Safety means freedom from the occurrence or risk of injury or loss. In order to ensure the continuing good health of their employees, the HRM focuses on the need for healthy workers and health services. Welfare: as defined by ILO at its Asian Regional Conference, defined labour welfare as a term which is understood to include such services, facilities, and amenities as may be established in or in the vicinity of undertakings to enable the person employed in them to perform their work in healthy, congenial surroundings and to provide them with amenities conducive to good health and high morale. Promotions: means an improvement in pay, prestige, position and responsibilities of an employee within his or her organization. Transfer: involves a change in the job (accompanied by a change in the place of the job) of an employee without a change in the responsibilities or remuneration. Separations: Lay-offs,

resignations and dismissals separate employees from the employers. Industrial relations: is concerned with the systems, rules and procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interests of the employed and their employers, and to regulate the ways in which employers treat their employees. Trade Unions: are voluntary organizations of workers or employers formed to promote and protect their interests through collective action. Disputes and their settlement: Industrial disputes mean any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person.